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Dan Burcaw is Co-Founder & CEO of Nami ML. He built a top mobile app development agency responsible for some of the most elite apps on the App Store and then found himself inside the mobile marketing industry after selling his last company to Oracle.

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Dan Burcaw
Written by
Dan Burcaw
6 Nov

Monetizing a SwiftUI App: IAP & Subscriptions

We shipped a new SwiftUI app, offering a lifetime IAP and two subscriptions plans powered by Nami. See how to do it.

We decided it was time to build and ship a brand new app using SwiftUI to experience first hand the latest from Apple.

The app, now available on the App Store, is called Serenity Now.

It’s a simple audio player with a SwiftUI interface and AVFoundation under the hood. The app is filled with a collection of sounds for focus, relaxation, and better sleep.

👉Read more: Adding In-App Purchases to SwiftUI Apps

App Monetization Goals

We’re in the monetization business, so we set out to implement our own Nami SDK to offer IAPs and subscriptions.

Here are the three products we want to offer:

  • Lifetime Access - $49.99 for life (only available as a launch exclusive)
  • Monthly Subscription - 3 day free trial, then $3.99 / month
  • Yearly Subscription - 1 month free trial, then $39.99 / year

Users who buy one of these products gets access to our Serenity Now Premium features. Those features include:

  • Premium-only sound collections - Nature, Uplifting, Water & Sleep
  • Premium controls -  Repeat & AirPlay
  • Ad-free experience

We want users to encounter our paywall during the app experience in three different places:

  • First Launch - The first time the user launch the app
  • Gated Content - Upon tapping a content tile that requires premium access
  • Marketing Tile - Tapping the premium access marketing tile in Settings

Now that our goals are clear, let’s see what it takes to accomplish.

The SwiftUI Lifecycle & SDK Initialization

SwiftUI apps don’t use the the AppDelegate we have all come to know from years of building iOS apps. Instead, the entry point for SwiftUI apps is a struct conforming to the App protocol.  

That protocol has one requirement, which is the implementation of a property called body. Digging into the specifics of body is outside the scope of this article, but suffice it to say that is where you’ll kick off your app’s user interface.

For our purposes, we need a place to configure the Nami SDK. It turns out, we can provide a custom init() method on our App struct for this purpose.

Here we setup our NamiConfiguration object with our app’s unique appPlatformID (found in the Nami Control Center > Integrations > [your Apple App Store integration]

Setting up an ObservableObject to Track Purchase State

We will need to monitor changes to the the entitlements a user has access to. A change may occur if they buy one of our IAP products, or if they have a subscription that expires.

In Serenity Now, if a user buys any one of the three IAP products, we grant them access to an entitlement called premium_access.  

In SwiftUI, we can monitor for user entitlement changes by setting up an ObservableObject. Specifically,  we need to register with the Nami SDK’s registerEntitlementsChangedHandler callback to update our ObservableObject’s premium var.

Since premium has a @Published property wrapper, any SwiftUI view’s body will be re-invoked any time the value changes.

This is exactly what we want. If a user buys one of our products, we want any of the SwiftUI views that rely on the value of premium, to be updated. Concretely, this means any view that gates access based upon the premium_access entitlement will update if the value changes.

Paywall Use Case: Initial App Launch

Next, we want to show our paywall the first time the user launches the app.

Serenity Now app paywall

In our main SwiftUI view, SerenityNowHome, we run some code in .onAppear that checks UserDefaults for the value of a key didLaunchBefore.  If the value is false, it’s the first launch of our app so we tell the Nami SDK to show a paywall if NamiDataSource’s premium var is False.

Paywall Use Case: Gating Premium Content

Next, we want to gate access to certain premium content in our app.

Gating premium access with Nami

If the user does not have access to the premium content (e.g. NamiDataSource’s premium var is False), we want to present the paywall. Otherwise, we want to show the SwiftUI with the relevant content.

Paywall Use Case: Premium Marketing Tile

Finally, we want to give users a way to access our paywall from a marketing tile in the Settings section of our app.

Providing a premium upsell banner in SwiftUI

In our Settings view, if the user does not have premium access (via our NamiDataSource), we show our NamiUpsellBannerView. If the user taps on it, we show our paywall.

If the user does have premium access, we instead show a link to Manage subscription which takes the user to the system Settings.

👉Read more:What’s New with In-App Purchases at WWDC 21

Final Thoughts

There is much more we want to do with our SwiftUI app and some advanced use cases we want to discuss in future blog posts.  For now, we hope this article shows how is it is to get up and running with some very common use cases for selling IAPs and subscriptions.

You may be wondering about the paywall view itself. The paywall was created via Nami’s no-code paywall designer. The Nami SDK provides a native Swift that is configurable from the Nami Control Center so you can make changes instantly.

The SDK provided paywall integrates seamlessly with our SwiftUI app from both a user interface and usability perspective. If you’re interested in giving Nami a spin for your own SwiftUI app, you can create a free account here.


       

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Written by
Dan Burcaw
6 Nov

Apple Fiscal Calendar 2022 & Developer Payout Schedule

Apple Fiscal Calendar 2022 starts on September 26, 2021 and ends on September 24, 2022. Learn how this is used for app developer payments.

Apple Fiscal calendar 2022 starts on September 26, 2021 and ends on September 24, 2022. Apple uses this calendar for the company’s accounting as well as reporting and payments due to app developers.

Here is the 2022 calendar by quarter and by period:

Apple Fiscal Calendar 2022 by Quarter:

  • Q1: September 26, 2021 - January 1, 2022
  • Q2: January 2, 2022 - April 2, 2022
  • Q3: April 3, 2022 - July 2, 2022
  • Q4: July 3, 2021 - September 24, 2022

Apple Fiscal Calendar 2022 by Period:

  • Period 1: September 26, 2021 - October 30, 2021
  • Period 2: October 31, 2021 - November 27, 2021
  • Period 3: November 28, 2021 -  December 25, 2021
  • Period 4: December 26, 2021 - January 29, 2022
  • Period 5: January 30, 2022 - February 26, 2022
  • Period 6: February 27, 2022 - March 26, 2022
  • Period 7: March 27, 2022 - April 30, 2022
  • Period 8: May 1, 2022 - May 28, 2022
  • Period 9: May 29, 2022 - June 25, 2022
  • Period 10: June 26, 2022 - July 30, 2022
  • Period 11: July 31, 2022 - August 27, 2022
  • Period 12: August 28, 2022- September 24, 2022

App Developer Payout Schedule

Apple pays developers proceeds for app or in-app purchase sales within 45 days of the last day of the fiscal month in which the transaction was completed.

Payments are made only if the following is true:

Apple consolidates proceeds so you can expect a single payment to your bank each fiscal period.

👉Read more: Accrued Revenue

Apple Developer Payout Calendar Resource

Here is an online Apple payout calendar resource you can bookmark that is updated for the current fiscal year. It’s also available in an downloadable PDF format.


       

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   👉Play Store Developer Payout Schedule
   

Written by
Dan Burcaw
6 Nov

App Store Receipt Verification Tutorial: The Basics

Server side validation of Apple App Store receipts can be tricky. We show how to build a simple server to handle the basics to verify receipts.

One of the more tricky parts of adding in-app purchases to your Apple App is verifying receipts on a server.  Apple strongly recommends that you use a server to parse and validate receipts.  This can helps to reduce the risk of fraud.  But how do you handle things like the call to verifyReceipt or SKReceiptRefreshRequest?  We’ll break this all down by showing you how to create a basic server to do iOS receipt validation.

Apple’s StoreKit framework provides a mechanism for selling in-app purchases or subscriptions through the App Store.

An essential artifact, the App Store receipt, is used to verify purchases and understand purchase activity. In this multi-part series, we will go beyond Apple’s documentation to demystify the receipt by coding a simple Python receipt validation script then progressively building out a server-side receipt validation app using Python, Flask, and Docker. This will make it easy for you to modify and deploy to a cloud service like AWS, GCP, or Azure.

Before we jump into the Python, let’s quickly talk about how to access the receipt on the client-side.

👉Read more: iOS App Shared Secret

Accessing the Receipt from your App

The primary way you will access an App Store receipt is from your app code.

From your Xcode project, you can use the Bundle.main.appStoreReceiptURL to access the Base 64 encoded receipt data.

Here’s an example:

The code above is not guaranteed to return a receipt. Whether a receipt is returned depends on the app build:

  • Debug or Ad-Hoc builds - The receipt will only exist after a test in-app purchase takes place.
  • App Store distribution - The receipt is created when you app is downloaded, even if it is free. Practically speaking, this means your code will always find a receipt if the user downloaded the app from the App Store.

Now that you know how to retrieve the encoded receipt, next we’ll talk about receipt validation.

Choosing a Receipt Validation Approach

Now that you know how to retrieve the encoded receipt, next you need to validate it.

It’s possible to validate a receipt from the client-side or the server-side. Server-side receipt validation is more complicated, but the benefits are numerous. Especially if you offer auto-renewing subscriptions, server-side validation is strongly encouraged. You and read more about choosing a receipt validation technique from Apple’s documentation.

An App Store receipt provides a record of the sale of an app or any purchase made from within the app, and you can authenticate purchased content by adding receipt validation code to your app or server. - Apple Developer Documentation

For this series, we’re going to employ server-side receipt validation. To do that, we're going to lean on Python, Flask, and Docker to consume an encoded receipt passed up from your app’s client code. Then, we’ll dig deeper into interpreting the decoded receipt, as well as what response to send back to your client.

If you’re ready to head straight into the details of a decoded receipt, jump to our definitive guide, an element-by-element breakdown of a decoded receipt.

First, let’s build a rudimentary script to to better understand the receipt verification workflow.

Building a Simple Command Line Receipt Validator with Python

Apple provides a verifyReceipt service to be used for server-side receipt validation. The basic request and response pattern for this service is pretty straightforward, which we can demonstrate with a simple Python CLI script that does the following:

  1. Load a encoded receipt from a local file
  2. Send a validation request to verifyReceipt
  3. Print the receipt validation status

Let’s get started!

We will be using Python 3 with standard libraries, so the first thing we need to do is import the modules we will need.

Next, we need create a global variables for the verifyReceipt endpoint. There are actually endpoints: Sandbox (sandbox.itunes.apple.com) & Production (buy.itunes.apple.com). Our script will support receipts from both environments, so let’s set global variables defining each endpoint.

To determine which endpoint needs to be used, you need to know what kind of app build was used to make the purchase.

  • Debug & Ad-Hoc builds - Generates Sandbox receipts
  • TestFlight or App Store builds  - Generate Production receipts

Since this script will take in command-line arguments, let’s create a simple method to handle sending the verify receipt request to Apple. Our method will accept several arguments including whether or not we should use the Sandbox endpoint.

Best Practice: Apple recommends first sending a receipt to Production. If the receipt is for Sandbox, the response will contain a status field with the value 21007. This is your signal to try the Sandbox endpoint instead.

Next, we need to construct a valid requestBody which consists of a JSON data structure contains the Base 64 encoded receipt and a password field which is required for auto-renewable subscriptions. To locate your app’s hexadecimal shared secret via App Store Connect, check out this guide.

Now we are ready to send the HTTP POST request to Apple.

If the request was successful, you will receive a HTTP 200 OK response code. This means we can expect to receive a JSON responseBody.  The first thing we need to inspect from the responseBody is the status field. If status is 0, the receipt is valid and many other fields will be present in the responseBody as well.  We’ll dive deeper into the various elements of the receipt later in this series.

For now, we will use the status value to print a message explaining whether the receipt was validated or not.  Just in case we don’t receive that HTTP 200 OK we were expecting, we’ll also catch and print any unexpected HTTP response codes here as well. In production, you can expect to see non-200 responses from Apple so you will need to add logic to handle this and retry if need be.

Here are the most common status values you will encounter:

  • 0 - The receipt is valid
  • 21002 - The encoded receipt passed in to the requestBody’s receipt-data property is malformed
  • 21004 - The shared secret provided in the requestBody’s password property does not match what on file with Apple
  • 21007 - The receipt is from the Sandbox environment, but it was sent to the Production verifyReceipt endpoint
  • 21008 - The receipt is from the Production environment, but it was sent to the Sandbox verifyReceipt endpoint

There are others which are much more rare that you can read about here.

Now we’re ready to prepare our command-line arguments. We expect a file containing an encoded receipt to be passed to this script. If we don’t at least see one command-line argument, let’s print a helpful message.

Let’s try to read in the encoded receipt data from the file path provided in that first argument.

We need to see if any optional command-line arguments were provided. This code supports a --secret argument to pass in the hexadecimal shared secret discussed previously. Additionally, --use_sandbox tells the script to use the Sandbox verifyReceipt endpoint. Otherwise, it will default to Production.

Finally, we construct our verify_receipt method call.

You now should have a good sense for what’s involved to send a receipt validation request to Apple and the basic response codes you can expect to encounter. Head on over to GitHub for the complete source code and examples for the Python CLI covered in this tutorial.

In the next part of this series, we dig deeper into the receipt responseBody.

Until next time, happy validating!

👉Read more: App Store Verify Receipt Definitive Guide

Written by
Dan Burcaw
5 Nov

How to Handle Error Code 1 on Google Play

Error Code 1, also known as User Canceled, occurs when a user actively backs out of an in-app purchase or subscription flow on Google Play. This is a common issue developers encounter during user testing or in real-time use, and while it’s not an error in the app’s code, it’s critical to handle this response to ensure a smooth user experience. Understanding how to address this error can help retain users and provide a seamless purchasing experience.

What Causes Error Code 1?

Error Code 1 is triggered by user action—specifically, when the user decides not to proceed with the purchase. This can happen for various reasons, such as changing their mind, encountering issues with the payment method, or facing unexpected charges. While this error does not indicate a bug, it’s important to handle it correctly to offer an intuitive user experience and potentially encourage the user to try again.

By anticipating why users might cancel, developers can refine the user journey and minimize the occurrence of this code.

Common Scenarios for Error Code 1 - User Canceled

Error Code 1 often arises in the following situations:

  1. User-Driven Cancellations: The user decides to cancel the transaction, often by pressing the back button or closing the purchase screen.
  2. Confusing Purchase Flow: If the purchase flow is not intuitive, users may abandon the process due to confusion or frustration.
  3. Unexpected Charges: Users may see a higher-than-expected price due to additional taxes or fees, leading them to cancel.
  4. Testing Scenarios: During testing, developers or QA teams may cancel transactions intentionally, which leads to this error.

Best Practices and Solutions for Handling Error Code 1

Solution 1: Implement a Cancellation Callback to Handle User Cancellations

  • Purpose: Detects when a user cancels and triggers appropriate in-app responses to guide them back to the purchase flow.
  • Steps:
  1. In the billing API, implement a cancellation callback to identify when the User Canceled response is received.
  2. Provide the user with a gentle message, like “Purchase was canceled. Would you like to try again?”
  3. If they opt to retry, reinitialize the purchase flow.
  • Result: This approach helps retain user interest and makes it easy to re-attempt the purchase.

Solution 2: Simplify and Streamline the Purchase Flow

  • Purpose: A simplified and intuitive purchase flow can reduce confusion and make it easier for users to complete transactions.
  • Steps:
  1. Ensure that the purchase flow is simple, with clear steps and minimal screens.
  2. Avoid additional steps that may delay the purchase or cause users to reconsider.
  3. Provide clear prompts and messages to guide users smoothly through each stage.
  • Result: A clear flow reduces abandonment rates and enhances the user experience during purchases.

Solution 3: Display Transparent Pricing Information Upfront

  • Purpose: Displays all potential charges early to prevent users from being surprised by the final price.
  • Steps:
  1. Include transparent information about additional fees or taxes in the initial purchase flow.
  2. Provide a preview of the total price to avoid unexpected costs at the payment stage.
  • Result: Transparency in pricing can reduce user cancellations due to unexpected charges.

Solution 4: Use Soft Reminders to Encourage Purchase Completion

  • Purpose: If a user cancels due to hesitation, a gentle reminder can encourage them to complete the purchase later.
  • Steps:
  1. If the user cancels, store their place in the purchase flow (if appropriate).
  2. Send a non-intrusive reminder after some time, prompting them to complete the purchase.
  3. Provide additional context or offer to enhance their interest in completing the transaction.
  • Result: Thoughtful reminders can bring users back to the purchase flow without being disruptive.

Solution 5: Gather User Feedback on Purchase Cancellations

  • Purpose: Helps identify common reasons for cancellations, enabling developers to improve the purchase experience.
  • Steps:
  1. Prompt users with an optional feedback form if they cancel, asking what prompted them to exit the purchase.
  2. Use feedback to adjust the purchase flow, addressing any common concerns or issues.
  • Result: Feedback can help refine the purchase process, leading to higher conversion rates and fewer cancellations.

Conclusion

Error Code 1 - User Canceled, is a common response that stems from user decisions to back out of the purchase process. By following these best practices—implementing cancellation callbacks, simplifying the purchase flow, displaying transparent pricing, using soft reminders, and gathering feedback—developers can improve the purchase experience and reduce cancellations.

Nami’s low-code solutions make managing and optimizing in-app purchases seamless, allowing you to avoid complex purchase flow setups and focus on delivering a frictionless app experience. Learn how Nami can handle in-app billing for you at NamiML.

Written by
Dan Burcaw
5 Nov

How to Fix Error Code 7 on Google Play

Error Code 7, commonly known as “Item Already Owned,” appears when a user attempts to purchase an in-app item or subscription that is already owned. This issue often arises during testing and can prevent developers from simulating new purchases or upgrades. Handling this error is crucial for a smooth user experience, particularly when managing subscription renewals and repeated purchases.

What Causes Error Code 7?

The root cause of Error Code 7 is that Google Play detects the item in question as already owned by the user. This situation commonly occurs with non-consumable purchases (such as subscriptions or one-time purchases) when previous transactions are not properly acknowledged or consumed. During testing, the error may persist if the same item is repeatedly tested without resetting ownership data or consuming the item, creating conflicts within the billing flow.

Understanding this can help developers clear ownership data or adjust purchase flow to avoid errors.

Common Scenarios for Error Code 7 - Item Already Owned

This error is frequently encountered in the following situations:

  1. Testing Subscription Renewals: Attempting to re-purchase an active or non-consumed subscription item.
  2. Repeated Testing of Non-Consumable Items: Non-consumable items like lifetime access or premium features trigger this error when purchased multiple times in the same account.
  3. Unconsumed Purchases: Consumable items that haven’t been properly consumed in the app’s code can show up as “already owned” on future attempts to purchase.
  4. Cached Ownership Data: Device or app caches may store outdated ownership data, causing the Play Store to return this error.

Step-by-Step Solutions for Error Code 7

Solution 1: Consume the Purchase Programmatically (for Consumable Items)

  • Purpose: Marking items as consumed allows them to be re-purchased in future transactions.
  • Steps:
  1. In the billing API implementation, call the consumeAsync() method for consumable items.
  2. Ensure the consumption logic is correctly integrated so that each item purchase is finalized in code.
  • Result: Successfully consuming the item lets the Play Store recognize it as available for future purchase.

Solution 2: Query Purchase History and Handle Ownership

  • Purpose: Ensures that the app retrieves the most recent ownership data, allowing it to adjust the purchase flow accordingly.
  • Steps:
  1. Implement a purchase history query in the Google Play Billing Library.
  2. Check whether the item in question is already owned based on the purchase history.
  3. Update the UI to reflect the item’s owned status, avoiding redundant purchase attempts.
  • Result: This approach clarifies ownership for the app, preventing unnecessary purchases and resolving potential conflicts.

Solution 3: Clear Google Play Store Cache and Data

  • Purpose: Removes cached ownership data on the device, which may show outdated purchase states.
  • Steps:
  1. On the testing device, navigate to Settings > Apps > Google Play Store.
  2. Tap Storage and select Clear Cache and Clear Data.
  3. Restart the Google Play Store and attempt the purchase again.
  • Result: This clears any outdated purchase information and ensures accurate status detection.

Solution 4: Cancel or Refund the Subscription Manually (for Testing)

  • Purpose: Removes active subscription status from the test account, allowing retesting without encountering the “already owned” error.
  • Steps:
  1. In the Google Play Console, navigate to Order Management.
  2. Locate the subscription purchase and cancel or refund it manually.
  3. Retry the subscription purchase in the test account.
  • Result: This resets the ownership status in test environments, making it possible to simulate new purchase flows.

Solution 5: Create a New Test Account

  • Purpose: Ensures a fresh testing environment without existing purchase history.
  • Steps:
  1. Create a new test account in the Google Play Console.
  2. Add the account to your test users and log in with it on the testing device.
  3. Run the purchase flow again using the new test account.
  • Result: A fresh account prevents any conflicts from previous purchases, allowing clean testing conditions.

Conclusion

Error Code 7 - Item Already Owned, is typically a result of unhandled ownership data or incomplete consumption in the app’s purchase flow. By implementing the above solutions—consuming items, querying purchase history, clearing cache, canceling subscriptions, and using fresh test accounts—developers can effectively resolve this error and optimize user experience.

With Nami’s low-code solutions, developers can bypass these issues entirely, allowing Nami to manage in-app purchases and updates automatically, so you can focus on building your app without billing-related headaches. Discover Nami’s solutions at NamiML.

Written by
Dan Burcaw
5 Nov

Free Trial Strategies for Higher Conversion Rates

In the battle for new users, free trials emerge as a winning strategy for businesses. From streaming services to software applications, free trials are a win-win – users can experience premium features without having to invest in a subscription up-front and businesses get a chance to showcase their value proposition. Let's start by unpacking the different types of free trials businesses can offer. Then, we'll explore strategies to maximize conversions and delve into the potential benefits and drawbacks for both companies and consumers.

Key Takeaways

  • Understanding Free Trials: Free trials are a strategic tool businesses, especially subscription-based ones, use to attract new customers. They offer a taste of the product or service for a limited time, with no upfront cost. This approach encourages customer engagement and increases the chances of trial users converting into paying subscribers.
  • Types of Free Trials: Businesses can tailor their free trials to meet specific goals and user preferences. The most common types of free trials are – time-limited, feature-limited, and capacity-limited trials.
  • Benefits of Free Trials: By offering a risk-free way to test the product, free trials build trust with potential customers. They can significantly boost conversion rates as users who experience the value firsthand are more likely to become paying subscribers.
  • Challenges with Free Trials: Free trials can attract users who have no intention of subscribing, leading to short-term engagement and low customer retention. Managing these non-convertible trials can be a challenge for businesses.
  • Strategies for Maximizing Free Trial Success: Effective onboarding practices and conversion optimization techniques are key. This includes clear communication from the start, timely incentives for subscribing and keeping users engaged through updates and personalized features.
  • Handling Non-Converting Users: Businesses need strategies to convert trial users, such as offering special pricing or additional features at the end of the trial period. Targeted follow-ups can also be effective in increasing conversion rates.

👉Read more: Monetizing Digital Products with Subscriptions

What Is a Free Trial?

A free trial is a test drive of a product or service that companies use to attract new customers,  letting them experience the product's features at no cost for a limited time. Free trials aim to showcase the value proposition and convince users to become paying subscribers. Typically, this marketing strategy requires users to enter payment details upfront, with charges applied only after the trial period ends, if the user does not opt out in time.

Different Types of Free Trials

Not all free trials are created equal! Businesses offer different structures to cater to various customer needs. Let's explore the most common types:

  • Time-limited Trials: These offer full access to a product or service for a specific period, usually ranging between 7 to 30 days. If customers do not cancel before the trial ends, they automatically become paying subscribers. This is a great option for customers if they want to fully test the product's capabilities before committing.
  • Feature-limited Trials:  Instead of offering full access for a limited time, these trials provide limited functionality indefinitely. Customers can use essential features for free and must upgrade to access more advanced features.
  • Capacity-limited Trials: Users get full access to all features but are limited in how much they can use the product. Examples include software that allows only a certain number of saved projects or a service with a limited amount of data usage until the user upgrades. This is a good choice for customers who want to try out the features but anticipate light usage.

By giving customers a choice between time-limited, feature-limited, and capacity-limited trials, companies can cater to diverse needs. Users gain valuable insights and a risk-free exploration to make an informed decision about becoming a paying subscriber.

Benefits of Offering Free Trials

1. Building Trust with Potential Customers

Free trials are more than just a gesture—they're a cornerstone for building trust in business. By offering trials without financial commitment, businesses show their confidence in their products or services. Such transparency empowers potential customers to evaluate offerings at their leisure without having to commit financially upfront. It fosters goodwill and minimizes perceived purchase risks. When a product consistently delivers exceptional value during a trial, it sets a sturdy foundation for lasting customer relationships.

2. Effective Implementation of Free Trials Drives Higher Conversion Rates

When customers get hands-on with a product and discover it meets, or even exceeds their expectations, they're poised to transition from trial users to loyal customers. Free trials are statistically proven to significantly elevate conversion rates. Companies, especially subscription businesses, offering trial experiences often witness substantial increases in conversion to paid subscriptions. This strategic approach amplifies immediate sales and increases customer lifetime value.

👉Read more: Five Paywall Product Best Practices

Potential Drawbacks of Free Trials

The Risk of Short-term Engagements

While free trials can be attractive to potential customers, they also come with the risk of short-term engagements. Some individuals may sign up just to enjoy the trial benefits, with no intention of becoming paying subscribers. This behavior can lead to low customer retention rates post-trial. For example, a streaming service offering a 30-day free trial may see viewers binge-watch their desired content and then cancel before any charges apply. Such a scenario undermines the main objective of free trials which is to convert trial users into loyal, paying customers.

Handling Non-convertible Free Trials

One of the biggest challenges with free trials is dealing with users who don't convert into paid subscriptions. Despite initial interest, some users don't transition to paying customers, leaving businesses to bear the costs of servicing non-paying users. To tackle this, companies need effective strategies to incentivize conversion. For example, offering exclusive features or content at the end of the trial period can encourage users to upgrade to a paid plan. Additionally, targeted follow-ups and personalized offers can boost conversion rates, transforming trial users into valuable long-term customers.

Key Strategies to Maximize Free Trial Success

Effective Onboarding Practices

Effective onboarding practices are crucial in demonstrating a product's value from the very first interaction. To maximize the success of conversion, start by providing an intuitive, step-by-step guide or tutorial immediately upon sign-up. For digital products, such as apps or software, consider interactive walkthroughs that showcase key features and tools in an engaging manner.

Establish clear and proactive communication tactics to get your messages across. Send welcome emails packed with valuable resources and direct contact information for customer support. Consistently update users about new features and tips through different channels, ensuring they remain engaged and informed throughout the free trial period.

It is important to personalize the onboarding journey to resonate with each user. By analyzing user behavior during the trial, tailor content and suggestions that align with their unique interests and business needs. This customized approach not only enhances the onboarding experience but also paves the way for converting new users into loyal, long-term customers.

Conversion Optimization Techniques

To maximize conversions from free trials to paid subscriptions, start by identifying at which points users disengage. Utilize analytics tools to track key metrics and gain insights into user behavior and preferences.

Next, offer timely incentives to encourage commitment. Provide special pricing or additional features for users who subscribe before the trial ends. For example, an online learning platform could offer a 20% discount on annual memberships if users subscribe within the first week.

Engaging users continuously throughout the trial period keeps them excited. Use push notifications or personalized emails to announce feature updates and showcase the benefits of the features, stating not just the “what” but also the “why”. It is a smart way to maintain high engagement rates.

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Conclusion

We’ve taken a look at free trials and the crucial role they play in subscription businesses. By adopting effective onboarding practices and conversion optimization techniques, businesses can greatly enhance the user experience and boost the chances of converting trial users into loyal subscribers. It's vital to continuously refine these strategies to stay ahead in a competitive market by leveraging the power of free trials to transform prospects into loyal customers.

Ready to take your conversions to the next level? With NamiML’s optimized paywalls for in-app purchases and cross-platform support, you can enhance user engagement and streamline your subscription flow. Discover how NamiML can simplify your subscription management and help you turn more trials into loyal customers.

Frequently Asked Questions

What is the purpose of free trials in digital marketing?

Free trials in digital marketing, especially in a subscription economy, are designed to let potential customers test a product or service without upfront financial commitment. They aim to increase user engagement and the likelihood of converting these users into paying subscribers by providing a risk-free experience.

What are some effective strategies for onboarding users during a free trial?

To maximize the impact of free trials, implement effective onboarding strategies such as step-by-step guides, clear messages, and personalized user experiences. These approaches help new users quickly familiarize themselves with the product or service, significantly increasing the likelihood of their conversion to paid subscribers.

How can companies improve the conversion rates from free trials to paid subscriptions?

Companies can improve conversion rates by pinpointing and addressing user disengagement points, offering incentives at the right moments in the user’s journey, and maintaining continuous engagement through regular updates and notifications regarding new features. These efforts ensure a smooth and seamless transition from free trials to paid subscriptions.

What challenges do free trials pose in digital marketing?

Free trials can present challenges, such as managing non-converting users and the financial burden of supporting trial participants which can be numerous. Additionally, measuring and tracking the effectiveness of trial periods can be complex but essential for optimizing marketing strategies.

Can personalized experiences really boost free trial success?

Personalized experiences can greatly enhance the success of free trials. Customizing the user journey based on individual preferences and behaviors boosts engagement and satisfaction, which are crucial for converting trial users into loyal paying customers.